Playa Blanca Housing Crisis: Mayor Demands Action on 178 Affordable Homes
Residents in Playa Blanca are still waiting for progress on two major public housing projects, with Yaiza Mayor Óscar Noda calling for urgent action over homes that are either yet to be built or remain unallocated.
The shortage of affordable housing in Playa Blanca and the wider Yaiza municipality has once again come under the spotlight, with the mayor calling on the Canary Islands Government, the Cabildo de Lanzarote and the Instituto Canario de la Vivienda (ICAVI) to speed up two long-awaited housing initiatives.
Together, the projects involve 178 homes — 136 planned for construction in Montaña Roja and 42 already completed at the Los Ajaches residential development.
136 affordable homes planned for Montaña Roja
The largest project involves 136 homes for affordable rental housing in Montaña Roja, Playa Blanca.
The Ayuntamiento de Yaiza previously transferred approximately 42,000 square metres of public land to the Canary Islands Government for the development. The project was originally announced with 126 properties but has subsequently been developed into a 136-home scheme.
According to the latest information from Yaiza, the project has been drawn up and has an estimated investment of around €34 million. However, construction has still not begun.
The delay is particularly significant given the demand for social and affordable housing in the municipality. Yaiza says around 400 people are currently registered as applicants for protected rental housing.
The mayor is now calling for the construction contract to be put out to tender and for a clear timetable covering financing, contracting and construction.
42 homes in Los Ajaches remain empty
The second issue concerns 42 newly built homes at the Los Ajaches residential development in Playa Blanca.
These properties were purchased in January 2025 by the Cabildo de Lanzarote, with co-financing from the Canary Islands Housing Institute, with the intention of adding them to the public affordable rental housing stock.
The Cabildo’s financial documentation puts the acquisition cost at approximately €9.39 million.
The properties were subsequently transferred to ICAVI, which is responsible for their allocation and management.
However, according to the latest statement from the Ayuntamiento de Yaiza, the homes have still not been allocated to families. A previous expectation that the properties would be awarded before summer 2026 has not been met.
For people currently searching for affordable accommodation in Playa Blanca, the situation is understandably frustrating: completed homes are available, while the process of determining who can move into them remains unfinished.
Why housing has become such a major issue in Playa Blanca
Playa Blanca is one of Lanzarote’s most popular tourist resorts and has experienced substantial growth over recent years.
But finding reasonably priced long-term accommodation has become increasingly difficult for many people living and working in the south of the island.
The housing issue is therefore not simply about people looking for somewhere to live. A shortage of long-term rental properties can also affect the ability of local businesses and essential services to attract and retain workers.
For residents, families and workers in Yaiza, Playa Blanca and the south of Lanzarote, the availability of affordable housing has become an increasingly important local issue.
More housing could be considered
The Montaña Roja and Los Ajaches projects are not the only potential additions to the public housing stock.
Yaiza has also indicated that a further 76 completed homes in a later phase of Los Ajaches could potentially be acquired for affordable rental housing.
Separately, in January 2026 the Canary Islands Government announced a €5.54 million grant to the Cabildo de Lanzarote towards the acquisition of 76 homes in the municipality of Yaiza as part of efforts to expand the island’s public affordable-rental housing stock.
That means there is potential for substantially more affordable housing in Yaiza, although individual projects still depend on the necessary funding, agreements and administrative procedures being completed.
What happens next?
The latest political pressure comes as the new State Housing Plan 2026–2030 gets underway.
The national plan is designed to increase the supply of public, protected and affordable housing, with 40% of its overall funding earmarked for increasing this type of housing stock.
Noda is calling for Playa Blanca’s projects to be treated as a priority, arguing that the area already has public land, an established project and demonstrated demand for affordable housing.
His latest proposal calls for a timetable for the 136-home development and for the allocation process for the 42 completed Los Ajaches properties to be brought to a conclusion.
For now, however, the key question for many local residents remains simple: when will the homes actually become available?
The housing shortage is one of the biggest challenges facing communities across Lanzarote, and in a growing resort such as Playa Blanca, the pressure is particularly visible.
The next stage will be watching to see whether the latest demands result in construction beginning at Montaña Roja and, just as importantly for the 42 families who could potentially benefit, whether the finished homes at Los Ajaches finally receive their new occupants.
